Bitcoin Holds Above $83,000 Despite 11% Nasdaq Plunge
2min read Bitcoin has demonstrated remarkable resilience, maintaining a price above $83,000 despite a severe crash in US stocks. The Nasdaq Index has plummeted by 11% over just two days, and traditional safe-haven assets like gold and silver have also experienced declines. This divergence has sparked discussions among experts about whether Bitcoin is decoupling from traditional markets or serving as a hedge against unstable government and financial systems.
Ask Aime: Is Bitcoin a reliable hedge in times of market chaos?
Adam Back, CEO of Blockstream, suggests that Bitcoin's strong performance indicates it is decoupling from stocks. He posits that earlier correlations between Bitcoin and equities were artificial, possibly manipulated by market makers using BTC liquidity to sync with equities. This perspective aligns with the idea that Bitcoin is increasingly seen as a hedge against global policies rather than a direct reflection of stock market performance.
Jeff dorman from arca offers a different view, arguing that Bitcoin is not a market hedge but rather a hedge against governments and banks. He points out that while Bitcoin shows strength, on-chain activity is slowing, which could indicate weak investor sentiment. Analyst Ali Martinez notes a decline in exchange-related activity, further suggesting caution among investors. Kyledoops adds that Bitcoin is currently in a 50/50 zone, meaning it could either bounce back or drop rapidly. Despite these mixed signals, Bitcoin's resilience suggests it may continue to hold strong if trust in traditional financial systems continues to erode.
On April 4, the trading day began with a bearish signal as a death cross appeared on the MACD at 00:45 UTC, leading to early selling pressure. However, bulls regained control with a golden cross at 5:00 UTC, sparking a temporary rally that peaked at $84,724.03. This resistance level coincided with the RSI entering overbought territory between 7:05 and 8:50 UTC. Bearish momentum resumed with a MACD death cross at 8:55 UTC, dragging prices lower. By 10:15 UTC, Bitcoin hit support at $81,664.74, as indicated by oversold conditions on the RSI.
At 11:45 UTC, a golden cross revived bullish sentiment, pushing the price upward. The rally faced resistance again at 17:45 UTC when the RSI re-entered overbought territory. A MACD death cross at 18:15 UTC reversed the trend. On April 5, the downtrend continued with a death cross at 2:00 UTC. RSI showed oversold levels at 6:45 UTC, hinting at a possible bounce. A golden cross at 7:25 UTC signaled a new bullish phase. According to the Bitcoin price prediction, if buyers maintain control, the price may break the $84,724.03 resistance. However, failure to hold momentum could send it back to test the $81,664.74 support.
Bitcoin's resilience during the current market crash suggests growing trust in it as a non-traditional asset. While traditional markets experience significant volatility, Bitcoin's price remains steady above $83,000. This stability indicates that investors may view Bitcoin as a safe haven amid economic uncertainty. However, declining exchange activity signals caution. In the short term, if the bullish momentum holds, Bitcoin could retest the $84,724 resistance. Conversely, if bearish pressure builds again, it may drop to the $81,664 support. The crypto market remains on edge as volatility continues, and the future of Bitcoin's price will depend on various factors, including investor sentiment and broader economic conditions.
